Announcement 2020-078 - HomeReady and Home Possible Income Limits

HomeReady and Home Possible Income Limit Change

Area Median Income Estimates (AMIs) are used in determining borrower eligibility for HomeReady and Home Possible mortgage loans.

 

HomeReady

On June 20, 2020, the 2020 HomeReady income limits will be implemented in Desktop Underwriter (DU) and published on the Fannie Mae Website. HomeReady Income Eligibility

 

DU will apply the 2020 limits to new DU loan casefiles created on or after June 20, 2020. Loan casefiles created prior to June 20, 2020 will continue to use the 2019 limits.

 

The new AMI limit tables will be updated in Epic in the next few days.

 

Home Possible

On July 12, 2020, Loan Product Advisor (LPA) and the Home Possible Income & Property Eligibility tool will be updated with the new 2020 area median income (AMI) limits.

 

If the subject property is located in a county where the AMI has declined and you submitted the loan to LPA before July 12, 2020, LPA will apply the higher 2019 AMI if the last submission of that loan prior to July 12 was Home Possible income-eligible.

 

In addition, if you submit an eligible Home Possible loan prior to July 12 and the AMI for the subject property increases, LPA will apply the higher 2020 limit in determining income eligibility.